Luxembourg Inflation Rate Picks Up to Over 1-1/2-Year High

The annual inflation rate in Luxembourg slowed sharply to 1.3% in January 2026, marking the lowest level in December 2024, down from 3.1% in the previous month. Main downward pressure came from a steep drop in housing and utilities (-1.55% vs. 7.76% in December), reflecting significantly lower energy costs, including a 10.5% decline in electricity prices, supported by government contributions to network usage fees. Petroleum products also continued their downward trend. Prices fell for clothing and footwear (-3.26% vs. -0.09%), transport (-0.38% vs. 1.39%), and information and communication (-0.55% vs. -1.6%). Meanwhile, inflation eased for food and non-alcoholic beverages (2.81% vs. 3.43%) and financial services (1.58% vs. 2.24%). On a monthly basis, consumer prices dropped 1.3% in January, the largest decline since January 1999, following a 0.1% increase in December.

The annual inflation rate in Luxembourg edged up to 3.1% in December 2025 from 3% in November. This marked the highest reading since March 2024, largely driven by higher prices for food and non-alcoholic beverages (3.43% vs 2.78% in November), housing and utilities (7.84% vs 7.44%), miscellaneous goods and services (2.71% vs 1.78%), and restaurants and hotels (2.97% vs 2.84%). Conversely, price growth slowed for transport (1.36% vs 2.26%), furnishings and household equipment (0.6% vs 1.52%), and recreation and culture (2.58% vs 3.95%). On a monthly basis, consumer prices increased by 0.1% in December, following a 0.2% drop in each of the previous two months. The core annual inflation rate rose to 2.9% in December from 2.6% in November.

The annual inflation rate in Luxembourg rose to 3% in November 2025, the steepest since March 2024, from 2.7% previously. Upward pressure came primarily from prices of housing & utilities (7.44% vs 6.54% in October); education (6.17% vs 6.17%); recreation & culture (3.95% vs 4.04%); food & non-alcoholic beverages (2.78% vs 2.29%); alcoholic beverages & tobacco (2.34% vs 1.68%); transportation (2.26% vs 1.73%) and furnishings & household equipment (1.52% vs 0.57%). By contrast, prices decreased for communications (-2.45% vs -2.11%) and clothing & footwear (-0.18% vs 1.20%). On a monthly basis, consumer prices fell by 0.2% in November, the same pace as in the prior month.